≈ The philosophy of patience. ≈
“There is an old story about a group of blind men walking down the road in India who come upon an elephant. Each one touches a different part of the elephant[…] and comes up with a different explanation of what he’d encountered based on the small part to which he has exposed. We are those blind men. Even if we have a good understanding of the events we witness, we don’t easily gain the overall view needed to put them together. […] Our knowledge is limited to the parts we’ve touched…[…]”Memo “The Long View” by Howard Marks —
Each type of trader is limited to the parts of the market they touch. While investors watch the corporate and economic cycles to base their decisions, day traders and swing traders watch candle patterns in the lookout for triggers to get in or out.
Investors need day traders. Their short-sightedness is annoying but they inject an enormous amount of liquidity in the system and also create opportunities due to their undeniable psychological biases.
Day traders need investors. Without corporate cycles backed up by stockholders’ investment decisions shooting for the long term growth of their businesses there would be no companies to be traded in the stock market in the first place.
To all of them, the depth of field should be elongated and the patience exercised. The net result of winners vs. losers in years is what will label them successful or not.
There is a causal relationship: cycles consist of series of events that cause the ones that follow. That is how the elephant is made.
In the end, we need each other. We are all blind anyway.
Chart of the Day
5G is coming hot at us
This chart shows a forecast of 5G subscriptions worldwide. Companies like Teradyne (NASDAQ: TER), Advanced Micro Devices (NASDAQ: AMD), Micron Technology (NASDAQ: MU), and Qorvo (NASDAQ: QRVO) are already surfing this 5G wave.
Video of the day
What is a Bull Market?
A bull market occurs when a financial instrument has been and expects to continue to appreciate in value over time.
Today’s line up
Tales of a Technician
Mister Softee Goes Boom
Charts tell tales of mystery and excitement. But to the illiterate, it all appears nonsensical, jibberish. One must be schooled in the dark arts of Technical Analysis to grasp the meaning and enjoy the adventure. Below I share the story of Microsoft from June 2019 through today.
Traders Lounge 11 PM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
The Coaches Show Replay
If you missed last night’s episode where Coach Tyler Craig and Coach Tim Justice talked about Portfolio Design or would like to watch it again, check it out here.
Cash Flow Condors MasterMind Group 8:30 PM EST
The Condors for Cash Flow system is a high probability option selling strategy designed to generate passive income over time. Join us tonight to go over next month’s orders.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
Trading Justice Podcast Episode 360: Portfolio Design
In this episode of the Trading Justice Podcast, Matt, Tim, and Mark are joined by Coach Emily Muiruri to discuss Portfolio Design. Topics discussed: How you allocate capital, which strategies you use, how you manage risk, position sizing, and financial goals. Listen to the episode in the player below:
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